<SUBMISSION>
<ACCESSION-NUMBER>0000891836-08-000182
<TYPE>SC 13D/A
<PUBLIC-DOCUMENT-COUNT>2
<FILING-DATE>20080912
<DATE-OF-FILING-DATE-CHANGE>20080912
<GROUP-MEMBERS>EDWARD H. MCDERMOTT
<GROUP-MEMBERS>J. STUART RYAN
<GROUP-MEMBERS>JOHN H. SCULLY
<GROUP-MEMBERS>SAN FRANCISCO PARTNERS II, L.P.
<GROUP-MEMBERS>SF ADVISORY PARTNERS, L.P.
<GROUP-MEMBERS>SPO ADVISORY CORP.
<GROUP-MEMBERS>SPO ADVISORY PARTNERS, L.P.
<GROUP-MEMBERS>SPO PARTNERS II CO-INVESTMENT PARTNERHSIP, L.P.
<GROUP-MEMBERS>SPO PARTNERS II, L.P.
<GROUP-MEMBERS>WILLIAM E. OBERNDORF
<GROUP-MEMBERS>WILLIAM J. PATTERSON
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>CALPINE CORP
<CIK>0000916457
<ASSIGNED-SIC>4911
<IRS-NUMBER>770212977
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
<ACT>34
<FILE-NUMBER>005-48317
<FILM-NUMBER>081069812
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>50 WEST SAN FERNANDO ST
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
<PHONE>4089955115
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>50 W SAN FERNANDO
<STREET2>SUITE 500
<CITY>SAN JOSE
<STATE>CA
<ZIP>95113
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>SPO ADVISORY CORP
<CIK>0000919468
<IRS-NUMBER>680247274
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D/A
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>591 REDWOOD HIGHWAY
<STREET2>SUITE 3215
<CITY>MILL VALLEY
<STATE>CA
<ZIP>94941
<PHONE>4153836600
</BUSINESS-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>SF ADVISORY CORP
<DATE-CHANGED>19990329
</FORMER-COMPANY>
</FILED-BY>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>sc0087.txt
<DESCRIPTION>SCHEDULE 13D, AMENDMENT NO. 2
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  SCHEDULE 13D

                    Under the Securities Exchange Act of 1934
                               (Amendment No. 2)*

                               CALPINE CORPORATION
                                (Name of Issuer)

                     COMMON STOCK, PAR VALUE $0.001 PER SHARE
                         (Title of Class of Securities)

                                    131347304
                                 (CUSIP Number)

                               SPO Advisory Corp.
                         591 Redwood Highway, Suite 3215
                          Mill Valley, California 94941
                                 (415) 383-6600

                                 with a copy to:

                                Alison S. Ressler
                             Sullivan & Cromwell LLP
                             1888 Century Park East
                       Los Angeles, California 90067-1725
                                 (310) 712-6600

           (Name, Address and Telephone Number of Person Authorized to
                       Receive Notices and Communications)

                               September 12, 2008
             (Date of Event which Requires Filing of This Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
Schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box [_].

Note. Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7 for other parties
to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

<PAGE>

                                                              Page 2 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         SPO Partners II, L.P.
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         WC
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 60,895,208 (1)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 60,895,208 (1)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 -0-
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         60,895,208
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         14.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         PN
--------------------------------------------------------------------------------

(1) Power is exercised through its sole general partner, SPO Advisory Partners,
    L.P.

<PAGE>
                                                              Page 3 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         SPO Partners II Co-Investment Partnership, L.P.
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         WC
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 5,150,500 (1)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 5,150,500 (1)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 -0-
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         5,150,500
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         1.2%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         PN
--------------------------------------------------------------------------------

(1) Power is exercised through its sole general partner, SPO Advisory Partners,
    L.P.

<PAGE>
                                                              Page 4 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         SPO Advisory Partners, L.P.
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 66,045,708 (1)(2)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 66,045,708 (1)(2)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 -0-
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         66,045,708
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         15.6%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         PN
--------------------------------------------------------------------------------

(1) Solely in its capacity as the sole general partner of SPO Partners II, L.P.
    with respect to 60,895,208 shares; and solely in its capacity as the sole
    general partner of SPO Partners II Co-Investment Partnership, L.P. with
    respect to 5,150,500 shares.

(2) Power is exercised through its sole general partner, SPO Advisory Corp.

<PAGE>
                                                              Page 5 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         San Francisco Partners II, L.P.
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     |_|
                                                                     (b)     |X|
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         WC
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         California
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 3,204,753 (1)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 3,204,753 (1)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 -0-
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         3,204,753
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         0.8%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         PN
--------------------------------------------------------------------------------

(1) Power is exercised through its sole general partner, SF Advisory Partners,
    L.P.

<PAGE>
                                                              Page 6 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         SF Advisory Partners, L.P.
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 3,204,753 (1)(2)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 3,204,753 (1)(2)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 -0-
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         3,204,753
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         0.8%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         PN
--------------------------------------------------------------------------------

(1) Solely in its capacity as the sole general partner of San Francisco Partners
    II, L.P.

(2) Power is exercised through its sole general partner, SPO Advisory Corp.

<PAGE>
                                                              Page 7 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         SPO Advisory Corp
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)        [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         Delaware
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 -0-
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            69,250,461 (1)(2)
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 -0-
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (1)(2)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,250,461
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                    [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         CO
--------------------------------------------------------------------------------

(1) Solely in its capacity as the sole general partner of SPO Advisory Partners,
    L.P. with respect to 66,045,708 of such shares; and solely in its capacity
    as the sole general partner of SF Advisory Partners, L.P. with respect to
    3,204,753 of such shares. These shares may also be deemed to be beneficially
    owned by J. Stuart Ryan, solely as a result of his advisory capacity to SPO
    Advisory Corp. with respect to investments by SPO Partners II, L.P., SPO
    Partners II Co-Investment Partnership, L.P. and San Francisco Partners II,
    L.P in securities of the Issuer.

(2) Power is exercised through its four controlling persons, John H. Scully,
    William E. Oberndorf, William J. Patterson and Edward H. McDermott.

<PAGE>
                                                              Page 8 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         John H. Scully
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)         [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         USA
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 -0-
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            69,250,461 (1)
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 -0-
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (1)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,250,461
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                      [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         IN
--------------------------------------------------------------------------------

(1) These shares may be deemed to be beneficially owned by Mr. Scully solely in
    his capacity as one of four controlling persons of SPO Advisory Corp.

<PAGE>
                                                              Page 9 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         William E. Oberndorf
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEM 2(e) OR 2(f)            [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         USA
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 -0-
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            69,250,461 (1)
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 -0-
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (1)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,250,461
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                       [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         IN
--------------------------------------------------------------------------------

(1) These shares may be deemed to be beneficially owned by Mr. Oberndorf solely
    in his capacity as one of four controlling persons of SPO Advisory Corp.

<PAGE>
                                                             Page 10 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         Edward H. McDermott
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEM 2(e) OR 2(f)            [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         USA
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 -0-
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            69,250,461 (1)
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 -0-
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (1)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,250,461
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                       [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         IN
--------------------------------------------------------------------------------

(1) These shares may be deemed to be beneficially owned by Mr. McDermott solely
    in his capacity as one of four controlling persons of SPO Advisory Corp.

<PAGE>
                                                             Page 11 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         William J. Patterson
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)             [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         USA
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 7,749 (1)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            69,250,461 (2)
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 7,749 (1)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (2)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,258,210
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                          [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         IN
--------------------------------------------------------------------------------

(1) These are shares of restricted stock awarded to Mr. Patterson in his
    capacity as a member of the board of directors of the Issuer.

(2) These shares may be deemed to be beneficially owned by Mr. Patterson solely
    in his capacity as one of four controlling persons of SPO Advisory Corp.

<PAGE>
                                                             Page 12 of 20 pages
CUSIP No. 131347304

--------------------------------------------------------------------------------
1.       NAME OF REPORTING PERSON
         J. Stuart Ryan
--------------------------------------------------------------------------------
2.       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP            (a)     [_]
                                                                     (b)     [X]
--------------------------------------------------------------------------------
3.       SEC Use Only
--------------------------------------------------------------------------------
4.       SOURCE OF FUNDS
         Not Applicable
--------------------------------------------------------------------------------
5.       CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
         ITEMS 2(e) OR 2(f)                [_]
--------------------------------------------------------------------------------
6.       CITIZENSHIP OR PLACE OF ORGANIZATION
         USA
--------------------------------------------------------------------------------
                          7.     SOLE VOTING POWER
                                 5,029 (1)
                          ------------------------------------------------------
Number Of Shares          8.     SHARED VOTING POWER
Beneficially Owned By            -0-
Each Reporting Person     ------------------------------------------------------
With                      9.     SOLE DISPOSITIVE POWER
                                 5,029 (1)
                          ------------------------------------------------------
                          10.    SHARED DISPOSITIVE POWER
                                 69,250,461 (2)
--------------------------------------------------------------------------------
11.      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
         69,255,490
--------------------------------------------------------------------------------
12.      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
         SHARES                            [_]
--------------------------------------------------------------------------------
13.      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
         16.4%
--------------------------------------------------------------------------------
14.      TYPE OF REPORTING PERSON
         IN
--------------------------------------------------------------------------------

(1) These are shares of restricted stock awarded to Mr. Ryan in his capacity as
    a member of the board of directors of the Issuer.

(2) These shares may be deemed to be beneficially owned by Mr. Ryan, solely in
    his capacity as an advisor to SPO Advisory Corp. with respect to investments
    by SPO Partners II, L.P., SPO Partners II Co-Investment Partnership, L.P.
    and San Francisco Partners II, L.P in securities of the Issuer.

<PAGE>

                                                             Page 13 of 20 pages

         This Amendment No. 2 amends the Schedule 13D (the "Original 13D") filed
with the Securities and Exchange Commission ("SEC") on February 11, 2008 and as
amended on August 12, 2008. Unless otherwise stated herein, the Original 13D, as
previously amended, remains in full force and effect. Terms used therein and not
defined herein shall have the meanings ascribed thereto in the Original 13D.

ITEM 5.  INTEREST IN SECURITIES OF THE ISSUER.

Item 5 is hereby amended and restated in its entirety as follows:

         (a) Percentage interest calculations for each Reporting Person are
based upon the Issuer having 422,969,381 total outstanding shares of Common
Stock as reported on the Issuer's S-3 filed with the Securities and Exchange
Commission on August 13, 2008.

         SPO

         The aggregate number of Shares that SPO owns beneficially, pursuant to
Rule 13d-3 of the Act, is 60,895,208 Shares, which constitutes approximately
14.4% of the outstanding Shares.

         SPO Co-Investment

         The aggregate number of Shares that SPO Co-Investment owns
beneficially, pursuant to Rule 13d-3 of the Act, is 5,150,500 Shares, which
constitutes approximately 1.2% of the outstanding Shares.

         SPO Advisory Partners

         Because of its position as the sole general partner of each of SPO and
SPO Co-Investment, SPO Advisory Partners may, pursuant to Rule 13d-3 of the Act,
be deemed to be the beneficial owner of 66,045,708 Shares, which constitutes
approximately 15.6% of the outstanding Shares.

         SFP

         The aggregate number of Shares that SFP owns beneficially, pursuant to
Rule 13d-3 of the Act, is 3,204,753 Shares, which constitutes approximately 0.8%
of the outstanding Shares.

         SF Advisory Partners

         Because of its position as the sole general partner of SFP, SF Advisory
Partners may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial
owner of 3,204,753 Shares, which constitutes approximately 0.8% of the
outstanding Shares.

<PAGE>
                                                             Page 14 of 20 pages

         SPO Advisory Corp.

         Because of its positions as the sole general partner of each of SPO
Advisory Partners and SF Advisory Partners, SPO Advisory Corp. may, pursuant to
Rule 13d-3 of the Act, be deemed to be the beneficial owner of 69,250,461 Shares
in the aggregate, which constitutes approximately 16.4% of the outstanding
Shares.

         JHS

         Because of his position as a control person of SPO Advisory Corp., JHS
may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
69,250,461 Shares in the aggregate, which constitutes approximately 16.4% of the
outstanding Shares.

         WEO

         Because of his position as a control person of SPO Advisory Corp., WEO
may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
69,250,461 Shares in the aggregate, which constitutes approximately 16.4% of the
outstanding Shares.

         WJP

         Individually, and because of his position as a control person of SPO
Advisory Corp., WJP may, pursuant to Rule 13d-3 of the Act, be deemed to be the
beneficial owner of 69,258,210 Shares in the aggregate, which constitutes
approximately 16.4% of the outstanding Shares.

         EHM

         Because of his position as a control person of SPO Advisory Corp., EHM
may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of
69,250,461 Shares, which constitutes approximately 16.4% of the outstanding
Shares.

         JSR

         The aggregate number of Shares that JSR owns beneficially, pursuant to
Rule 13d-3 of the Act, is 69,255,490, which constitutes approximately 16.4% of
the outstanding Shares.

<PAGE>
                                                             Page 15 of 20 pages

         To the best of the knowledge of each of the Reporting Persons, other
than as set forth above, none of the persons named in Item 2 hereof is the
beneficial owner of any Shares.

         (b) SPO

         Acting through its sole general partner, SPO has the sole power to vote
or to direct the vote and to dispose or to direct the disposition of 60,895,208
Shares.

         SPO Co-Investment

         Acting through its sole general partner, SPO Co-Investment has the sole
power to vote or to direct the vote and to dispose or to direct the disposition
of 5,150,500 Shares.

         SPO Advisory Partners

         Acting through its sole general partner and in its capacity as the sole
general partner of each of SPO and SPO Co-Investment, SPO Advisory Partners has
the sole power to vote or to direct the vote and to dispose or to direct the
disposition of 66,045,708 Shares.

         SFP

         Acting through its sole general partner, SFP has the sole power to vote
or to direct the vote and to dispose or to direct the disposition of 3,204,753
Shares.

         SF Advisory Partners

         Acting through its sole general partner and in its capacity as the sole
general partner of SFP, SF Advisory Partners has the sole power to vote or to
direct the vote and to dispose or to direct the disposition of 3,204,753 Shares.

         SPO Advisory Corp.

         Acting through its controlling persons and through JSR in his advisory
capacity, and in its capacities as the sole general partner of each of SPO
Advisory Partners and SF Advisory Partners, SPO Advisory Corp. may be deemed to
have shared power with JSR to vote or to direct the vote and to dispose or to
direct the disposition of 69,250,461 Shares in the aggregate.

         JHS

         As one of four controlling persons of SPO Advisory Corp., which is the
sole general partner of each of SPO Advisory Partners and SF Advisory Partners,
JHS may be deemed to have shared power with WEO, WJP and EHM to vote or to
direct the vote and to dispose or to direct the disposition of 69,250,461 Shares
held by SPO, SPO Co-Investment and SFP in the aggregate.

         WEO

         As one of four controlling persons of SPO Advisory Corp., which is the
sole general partner of each of SPO Advisory Partners and SF Advisory Partners,
WEO may be deemed to have shared power with JHS, WJP and EHM to vote or to
direct the vote and to dispose or to direct the disposition of 69,250,461 Shares
held by SPO, SPO Co-Investment and SFP in the aggregate.

<PAGE>
                                                             Page 16 of 20 pages

         WJP

         As one of four controlling persons of SPO Advisory Corp., which is the
sole general partner of each of SPO Advisory Partners and SF Advisory Partners,
WJP may be deemed to have shared power with JHS, WEO and EHM to vote or to
direct the vote and to dispose or to direct the disposition of 69,250,461 Shares
held by SPO, SPO Co-Investment and SFP in the aggregate. In addition, WJP has
the sole power to vote or to direct the vote and to dispose or to direct the
disposition of 7,749 shares of restricted stock awarded to WJP in his capacity
as a director of the Issuer.

         EHM

         As one of four controlling persons of SPO Advisory Corp., which is the
sole general partner of each of SPO Advisory Partners and SF Advisory Partners,
EHM may be deemed to have shared power with JHS, WEO and WJP to vote or to
direct the vote and to dispose or to direct the disposition of 69,250,461 Shares
held by SPO, SPO Co-Investment and SFP in the aggregate.

         JSR

         Because of his advisory position in SPO Advisory Corp., which is the
sole general partner of each of SPO Advisory Partners and SF Advisory Partners,
JSR may be deemed to have shared power with SPO Advisory Corp. to dispose or to
direct the disposition of 69,250,461 Shares in the aggregate. In addition, JSR
has the sole power to vote or to direct the vote and to dispose or to direct the
disposition of 5,029 shares of restricted stock awarded to JSR in his capacity
as a director of the Issuer.

         (c) Since the most recent filing on Schedule 13D, Reporting Persons
acquired Shares through open market purchases on the New York Stock Exchange as
set forth on Schedule I attached hereto.

         Except as set forth in this paragraph (c), to the best of the knowledge
of each of the Reporting Persons, none of the persons named in response to
paragraph (a) has effected any transactions in Shares since the most recent
filing on Schedule 13D.

         (d) Each of the Reporting Persons affirms that no person other than
such Reporting Person has the right to receive or the power to direct the
receipt of distributions with respect to, or the proceeds from the sale of,
Shares owned by such Reporting Person.

         (e) Not applicable.

<PAGE>
                                                             Page 17 of 20 pages


ITEM 6.  CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
         TO SECURITIES OF THE ISSUER.

Item 6 is hereby amended and restated in its entirety as follows:

         Both WJP and JSR are members of the Board of Directors of the Issuer.
On September 12, 2008, SPO, JHS, WJP, WEO, EHM and certain of their affiliates
signatory thereto (together, the "SPO Parties") entered into a Rule 10b5-1
Purchase Plan (the "Plan") with Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch") in accordance with Rule 10b5-1 under the
Securities Exchange Act of 1934, as amended (the "Act"). The Plan provides that
subject to the terms and conditions of the Plan, Merrill Lynch will purchase up
to $254 million in Shares. Purchases under the Plan will terminate on the
earliest to occur of: (i) March 29, 2009, (ii) the completion of purchases of
$254 million in Shares, (iii) the receipt by Merrill Lynch of written notice
from SPO Advisory Corp., on behalf of the SPO Parties, of the termination of the
Plan and (iv) the reasonable determination of SPO Advisory Corp. or Merrill
Lynch that the Plan does not comply with Rule 10b5-1 or other applicable
securities laws or any of the parties thereto have not complied with the Plan,
Rule 10b5-1 or other applicable securities laws. The Plan may be amended only
upon the written agreement of SPO Advisory Corp., on behalf of the SPO Parties,
and Merrill Lynch.

         Otherwise, except as set forth herein, there are no contracts,
arrangements, understandings or relationships of the type required to be
disclosed in response to Item 6 of Schedule 13D of the Act with respect to the
Shares owned by the Reporting Persons.


ITEM 7.  MATERIAL TO BE FILED AS EXHIBITS.

Exhibit A:        Agreement pursuant to Rule 13d-1 (k)

<PAGE>
                                                             Page 18 of 20 pages





                                    SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.



Dated: September 12, 2008                  By:   /s/ Kim M. Silva
                                             ---------------------------------
                                                   Kim M. Silva

                                             Attorney-in-Fact for:

                                             SPO PARTNERS II, L.P. (1)
                                             SPO PARTNERS II CO-INVESTMENT
                                                  PARTNERSHIP, L.P. (1)
                                             SPO ADVISORY PARTNERS, L.P. (1)
                                             SAN FRANCISCO PARTNERS II, L.P. (1)
                                             SF ADVISORY PARTNERS, L.P. (1)
                                             SPO ADVISORY CORP. (1)
                                             JOHN H. SCULLY (1)
                                             WILLIAM E. OBERNDORF (1)
                                             WILLIAM J. PATTERSON (1)
                                             EDWARD H. MCDERMOTT (1)
                                             J. STUART RYAN (1)


                                             (1) A Power of Attorney
                                             authorizing Kim M. Silva to
                                             act on behalf of this
                                             person or entity has been
                                             previously filed with the
                                             Securities and Exchange
                                             Commission.

<PAGE>
                                                             Page 19 of 20 pages



                           SCHEDULE I TO SCHEDULE 13D

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                                                             PRICE PER SHARE         WHERE/HOW
                               DATE OF                            NUMBER     ($)/ CONVERSION        TRANSACTION
     REPORTING PERSON        TRANSACTION          TYPE          OF SHARES         RATIO               EFFECTED
---------------------------------------------------------------------------------------------------------------------
<S>                           <C>              <C>              <C>              <C>             <C>

None

</TABLE>

<PAGE>

                                                             Page 20 of 20 pages


                                  EXHIBIT INDEX


EXHIBIT                   DOCUMENT DESCRIPTION
--------------------------------------------------------------------------------
A                         Agreement Pursuant to Rule 13d-1 (k)
--------------------------------------------------------------------------------
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>ex-a.txt
<DESCRIPTION>EXHIBIT A
<TEXT>
                                    EXHIBIT A

         Pursuant to Rule 13d-1(k) of Regulation 13D-G of the General Rules and
Regulations of the Securities and Exchange Commission under the Securities
Exchange Act of 1934, as amended, the undersigned agrees that the statement to
which this Exhibit is attached is filed on behalf of each of them in the
capacities set forth below.


Dated: September 12, 2008                By:   /s/ Kim M. Silva
                                             ---------------------------------
                                                   Kim M. Silva

                                             Attorney-in-Fact for:

                                             SPO PARTNERS II, L.P. (1)
                                             SPO PARTNERS II CO-INVESTMENT
                                                  PARTNERSHIP, L.P. (1)
                                             SPO ADVISORY PARTNERS, L.P. (1)
                                             SAN FRANCISCO PARTNERS II, L.P. (1)
                                             SF ADVISORY PARTNERS, L.P. (1)
                                             SPO ADVISORY CORP. (1)
                                             JOHN H. SCULLY (1)
                                             WILLIAM E. OBERNDORF (1)
                                             WILLIAM J. PATTERSON (1)
                                             EDWARD H. MCDERMOTT (1)
                                             J. STUART RYAN (1)

                                             (1) A Power of Attorney
                                             authorizing Kim M. Silva to
                                             act on behalf of this
                                             person or entity has been
                                             previously filed with the
                                             Securities and Exchange
                                             Commission.
</TEXT>
</DOCUMENT>
</SUBMISSION>
